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The BZ-50676 company charges a price of $244 per unit of its product. The company's variable cost per unit is $56. The BZ-50676 company
The BZ-50676 company charges a price of $244 per unit of its product. The company's variable cost per unit is $56. The BZ-50676 company on average sells 8,400 units per month. Fixed expenses are $876,000 per month. The company considers cutting the selling price by $30 and increasing its advertising budget by $66,000 per month. The company predicts monthly sales quantity to increase by 25%. What is the overall effect on the BZ-50676 company's monthly net operating income of these changes? (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Multiple Choice 13,800 dollars -63,840 dollars 63,520 dollars -16,500 dollars
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